Loading Content...
Zip Code 59105: Rising Home Values and Ownership in Billings, Montana's Dynamic Real Estate Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 59105, located in Billings, Montana, has experienced significant shifts in homeownership rates and housing prices over the past decade. This area has seen a steady increase in homeownership, coupled with rising average home prices and fluctuating average rent costs.
The homeownership rate in zip code 59105 has shown a consistent upward trend, increasing from 70% in 2013 to 76% in 2022. This 6 percentage point increase coincides with a substantial rise in average home prices. In 2013, the average home price was $214,329, which steadily climbed to $367,605 by 2022, representing a 71.5% increase over this period. The most significant annual jump occurred between 2020 and 2021, when average home prices surged from $279,757 to $314,404, a 12.4% increase in a single year.
Federal interest rates have played a crucial role in shaping homeownership trends in this zip code. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates corresponded with the steady increase in homeownership rates, as more affordable financing options likely encouraged home buying. The sharp drop in interest rates from 2.16% in 2019 to 0.38% in 2020 and 0.08% in 2021 may have further fueled the homeownership increase from 73% to 75% between 2020 and 2021.
Conversely, as homeownership rates increased, the percentage of renters in zip code 59105 decreased from 30% in 2013 to 24% in 2022. Despite this decline in the renter population, average rent prices have generally trended upward. In 2013, the average rent was $973, which increased to $1,114 by 2022, representing a 14.5% rise. However, rent prices have shown more volatility than home prices, with fluctuations such as a decrease from $1,074 in 2016 to $1,021 in 2017, followed by increases in subsequent years.
Looking at the most recent data, average home prices in zip code 59105 continued to rise in 2023 and 2024, reaching $388,365 and $397,648 respectively. This represents a 5.6% increase from 2022 to 2023 and a further 2.4% increase from 2023 to 2024. Interestingly, federal interest rates also saw significant increases during this period, rising to 5.02% in 2023 and 5.33% in 2024, which are the highest rates since 2007.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 59105 to continue their upward trajectory, potentially reaching around $450,000 by 2029. This projection is based on the historical growth rate and assumes no major economic disruptions. Average rent prices are also likely to continue increasing, albeit at a slower pace, potentially reaching approximately $1,300 by 2029.
In summary, zip code 59105 has demonstrated a clear trend of increasing homeownership rates and rising average home prices over the past decade. This trend has persisted even in the face of recent interest rate hikes, suggesting a strong local housing market. The rental market, while shrinking in terms of population percentage, has seen generally increasing average rents. These trends point to a growing preference for homeownership in this area, potentially driven by the long-term financial benefits of owning versus renting in a market with appreciating home values.
